July 10, 2018:

On Tuesday, Supreme Court stated that Latha Rajinikanth a that she will have to face a trial for not complying with an undertaking to pay Rs 6.2 crore that she owed to a movie distribution company for the post-production work of Tamil film Kochadaiyaan.

Superstar Rajinikanth's Wife Latha will now have to seek bail from the trial court now.

Apex Court Bench headed by Justice Ranjan Gogoi set aside Karnataka HC's Order, which had quashed a Private Complaint against Latha over non-repayment of a loan.

SC Bench stated that,"This is a case fit for trial. There was no reason for the High Court to have quashed the complaint. You prove your innocence during trial"while allowing appeal filed against the order to exonerate her.

Apex Court stated that it is a 'triable issue' and that the High Court was not justified in quashing the case which should have gone for trial.

AD-Bureau Advertising Pvt Ltd has alleged that it had given the money during the post-production of 2014 film Kochadaiiyaan to Mediaone Global Entertainment Ltd on personal guarantee of Latha, who is a director in Mediaone.

Agency, in its private complaint had alleged that they had funded Rs 10 crore for the film.

Advertising agency sought investigation and trial of Latha under charges of cheating, alleging that her firm did not only fail to repay the money, but also used the loan to cover some previous debts.

While Trial Court had ordered for investigation, Karnataka HC quashed the complaint, compelling Advertising agency to move Supreme Court in appeal.

The advertising agency had claimed that Mediaone Global Entertainment Ltd was required to refund Rs 10 crore plus Rs 1.2 crore being the "guaranteed profit", but the amount was not refunded.

In February, Latha's Lawyer gave an undertaking in Court that if her firm does not pay in three months, she will be personally liable to pay Rs 6.2 crore to the advertising agency.

However, last week, Lawyer for her firm offered to give a cheque of only Rs 10 lakh and contended that the previous undertaking was without her approval.

Advocate appearing on behalf of Latha submitted that they had argued before the high court about "breach of agreement" by the agency since they had agreed to pay Rs 20 crore to Mediaone Global Entertainment Ltd but later paid only Rs 10 crore.

To this SC Bench replied that,"Just because they (agency) did not give you Rs 20 crore, will you retain whatever they had given you".

Source The New Indian Express

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